October 18, 2016 / 12:11 IST
Centrum has come out with its second quarter (July-September) earnings estimates for the Automobiles sector. The brokerage house expects
Swaraj Engines to report net profit at Rs 18.7 crore, down 1.3 percent quarter-on-quarter.
Net Sales are expected to decrease by 0.9 percent Q-o-Q (up 11.1 percent Y-o-Y) to Rs 169.4 crore, according to Centrum.
Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to fall by 3.9 percent Q-o-Q (up 20.1 percent Y-o-Y) to Rs 27.3 crore.
Centrum's report on Swaraj EnginesWe expect the company to register EBITDA margins of 16% as it gets the benefit of strong operating leverage.
We expect recurring PAT of Rs187mn, up 20% YoY (-1% QoQ). We continue to maintain a Hold rating with TP of Rs1,040 (based on 15x March’18E EPS).
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